For intraday option writing, can one pledge shares and write options without having cash component?
Is this still valid?
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valid!
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On expiry day, can we write options with non cash component of collateral?
As the position is not carried overnight, will it still attract intrest penalty?
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the rule doesn’t apply for intraday
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Yes, but if i write options using NRML on expiry day by using non cash component of collateral and not square it off?
Will that be counted as overnight postion and will it attract intrest penalty?
No interest charged
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nope. The market closes price is the end of the option contract on expiry day (i.e. no overnight risk). only exception is usdinr (market close isn’t the contract close price)
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nope
Thanks, have a very far out of money Nifty CE short. Was pondering if to close the contract or not.
Thanks a ton.
